NEVADA: Slot-machine maker and lottery operator International Game Technology PLC said Thursday revenue climbed 30% in the latest quarter as the company joined together Italy’s GTECH SPA and U.S.-based IGT.
Shares climbed 4.3% in midday trading as adjusted earnings topped Wall Street expectations. Earnings were hurt however, by rising expenses and currency effects, the company said.
The merger was completed in April, with GTECH paying $4.7 billion in cash and stock for IGT. On a pro-forma basis with the newly created company compared with the combined results of the separate entities a year ago, revenue fell 18%.
During the quarter, the company sold 6,622 gaming machines world-wide; and global lottery same-store revenue, excluding Italy, increased 6%.
Overall, the company posted a profit of $7.1 million, or 4 cents a share, down from $76.1 million, or 44 cents a share a year earlier. Expenses climbed 44% during the quarter, helping drive the drop.
On an adjusted basis, earnings were 41 cents, down from 54 cents a year earlier. Revenue jumped 30% to $1.21 billion.
Analysts surveyed by Thomson Reuters had expected adjusted earnings of 31 cents with revenue of $1.27 billion.
On a pro-forma basis, revenue fell 18% and operating income dropped 58%.
